The IPO of Brainbees Solutions, which owns the baby products brand FirstCry, garnered 12 subscriptions on Thursday, the concluding day of the issue.
The qualified institutional buyer portion of the IPO was subscribed 19.30 times, the high net worth individual quota 4.68 times, and the retail portion 2.31 times. The portion reserved for employees was subscribed 6.6 times.
The company has set the price band of Rs 440-465 per share. At the top end, the multi-channel retailer will be valued at Rs 24,142 crore. FirstCry’s Rs 4,193 crore IPO comprised a fresh fundraise worth Rs 1,666 crore and a secondary share sale worth Rs 2,528 crore. SoftBank, Mahindra & Mahindra, Premji Invest, and TPG are the selling shareholders.
FirstCry will use the IPO proceeds to set up new stores, lease payments for its existing stores, invest in its subsidiary for its overseas expansion, and pay technology costs, among others. In FY24, the company had revenues from operations of Rs 6,480 crore and a net loss of Rs 321 crore.
Ceigall India slips on debut
Ceigall India, a road construction company, saw its shares end below their issue price during their trading debut on Thursday. Shares of the company closed at Rs 388, down Rs 13, or 3.2 per cent, over its issue price of Rs 401.
The stock hit a high of Rs 425 and a low of Rs 383 on the NSE, where Rs 587 crore were traded. Ceigall’s Rs 1,253 crore IPO had garnered 14 times subscription. At the last close, the company was valued at Rs 6,756 crore. Ceigall currently trades at a price-to-earnings multiple of nearly 23 times its FY24 earnings.
By comparison, peers such as PNC Infratech, GR Infraprojects, HG Infra Engineering, KNR Constructions, ITD Cementation India, and J Kumar Infraprojects are trading at P/E of 14.5x, 15.1x, 20.6x, 14.5x, 32.1x, and 19.5x respectively, as per a report by Marwadi Financial Services. Ceigall specialises in structural projects, including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways. The company’s order book as of June 30 stood at Rs 9,471 crore.
First Published: Aug 08 2024 | 6:31 PM IST
